Quote:
Originally Posted by Bill14564
In addition to the interest on the bond there is the yearly admin fee. This may be negligible at the beginning of the payments but drives the effective interest rate up towards the end of the loan.
I could find no money market account with an interest rate above 5%.
The stock market is up this week but may be down next week. Over time it has increased but there is always the risk of a downturn. On the other hand, the interest and admin fee on the bond will always be there.
I paid mine off with no regrets over throwing free money away.
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At age 71 hubby and I are definitely not worried about the effective interest rate at the end of a 30 year loan. I doubt we’ll still be here, lol. We paid cash for our home, so the bond is our only payment. We’re happy.